Nebraska agland values decline for second consecutive year

Agricultural land values fell in Nebraska over the past year, marking the second consecutive year of declining land values in the state.

A preliminary report from the University of Nebraska-Lincoln’s 2025-26 Farm Real Estate Market Survey said agland values declined 1% over the past year, now averaging $3,905 per acre.

The two years of declines follow average valuations reaching $4,015 per acre in 2024.

The survey’s preliminary report was published Wednesday by the university’s Center for Agricultural Profitability, based in the Department of Agricultural Economics. It provides estimates of agland values and cash rental rates, broken down by region and land class across Nebraska.

A news release said officials who participated in this year’s survey attributed the decline to lower crop prices, higher farm input costs and prevailing interest rates.

“Many operations are facing tighter liquidity as crop revenues decline while input costs remain elevated,” Jim Jansen, an extension agricultural economist who leads the annual report, said in the release. “Those conditions are leading producers and lenders to take a more cautious approach when navigating these financial pressures.”

Center pivot irrigated cropland averaged a 2% drop statewide, while gravity irrigated cropland declined 3%. Dryland with irrigation potential fell 2% and dryland without irrigation potential decreased 1%. Grazing land and hayland values increased between 4% and 7% as strong cattle prices supported demand for pasture acres.

Crop receipts in Nebraska declined by about $576.6 million, or 16%, in 2025 as corn prices fell and soybean and wheat production dropped. Those losses were partially offset by a $3.22 billion increase in livestock receipts statewide. Jansen said the differences in crop and livestock profitability were reflected in land value trends across the state.

Average cash rental rates in Nebraska followed a similar trend. Rental rates for dryland and irrigated cropland declined between 1% and 9% across the state, reflecting lower commodity prices and tighter margins for crop producers. Rental rates for pasture and cow-calf pairs increased about 4% to 5% compared with the previous grazing season.

“Flexible lease provisions can help landowners and tenants manage production and price risk when margins are tight,” Jansen said. “Factors such as crop prices, input costs and drought conditions all play a role in how lease agreements are structured.”